Australasia's largest real estate company also forecast continued sales growth in the second half of calendar 2009 on the back of improved investor confidence.

Group sales for June rose to $2.411 billion, from $1.8 billion in the corresponding month in 2008, the group said.

"Despite months of negative reports on the economic downturn and the global recession, I think investors in Australia are starting to realise it's not the end of the world and they are regaining confidence," Ray White deputy chairman Sam White said on Wednesday.

"They're also starting to see that property investment has a lower level of risk when you compare it with the volatile sharemarket.

"Despite a small decline in the real estate market since early 2008, it is still actually performing quite well nationwide."

Ray White's figures show property sales in all states grew in the double digits from a year ago, with New South Wales a standout with sales growth of more than 40 per cent following a lift in high-end property sales.

Mr White said the combination of low interest rates, softer property prices, a shortage of housing stock and strong rental demand was attracting investors.

"They are returning to the market and should continue to do so over the second half of the year, particularly in fringe areas within commuting distance of the major capital cities," he said.

Ray White sales in Queensland grew by 27 per cent in June from a year ago.

South Australia and Northern Territory sales were up 25 per cent while Victoria and Western Australia sales were both up 23 per cent.

Ray White's outlook was backed by other figures showing private investment in commercial property was also strong.

The research by real estate service firm CB Richard Ellis shows private investors and syndicators are dominating commercial investment activity in Australia.

It found $2.4 billion of commercial property valued at more than $5 million each changed hands in the first half of calendar 2009.

A staggering 47 per cent of all purchases in the first half were made by private investors, while syndicators accounted for 14 per cent of all sales.

"Together these two private groups represented an unprecedented share of almost two-thirds of all Australian purchases," the company said on Tuesday.

"We've never seen private interests dominate trading activity like this before."

The same grouping was responsible for 38 per cent of all sales in 2008.

However, the $2.4 billion in sales recorded in the first half of 2009 was down 45 per cent from the same period in 2008.

The number of sales above $5 million each declined by 22 per cent over the same period to 110, from 155.

CB Richard Ellis said the sales tally was still high given the tough economic climate and tighter lending market.

Source:AAP